eToro reports 73% of its Q2 revenue came from crypto trading fee

eToro crypto
“Crypto Currencies’ Red Sea” by Jim Makos is licensed under CC BY-ND 2.0

Key Takeaways:

  • eToro released its Q2 report in August, containing several important stats.
  • The platform’s revenue from crypto-trading grew 10x in a year.
  • What else is new for eToro?

YEREVAN (CoinChapter.com) – eToro, an Israel-based social trading and multi-asset brokerage company, released its second-quarter report. The platform specified that it acquired 73 percent of its Q2 revenue through crypto-trading. Compared to Q2 2020, that percentage has grown over ten times.

The Q2 report

The quarterly report included several stats that reveal the geographical distribution of eToro’s clients, the overall trade volume, and the total commissions, among other details.

The company has $9.4 billion in assets under administration. The Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) came in at $33.2 million, a 107.5 percent improvement from Q2 2020.

eToro capture about 68% of its client volume from Europe, while the Asia Pacific region contributed 15%. Meanwhile, the Q2 2021 statistics saw increased accounts from North and South America. As a result, the total number of users grew 61 percent in a year, going from 14.4 million in Q2 2020 to 23.2 million in Q2 2021.

“eToro’s offering in the US is currently limited to crypto assets and social trading and has grown in 2020, in line with increased eToro brand awareness and rising interest in crypto assets,”

specified the report.
Paid accounts' geographical distribution. Source: eToro Q2 report
Funded accounts’ geographical distribution. Source: eToro Q2 report

Also read: Could Fed tapering cause a massive crypto market crash? The dollar answers

eToro and crypto

eToro’s year-over-year total revenue has significantly grown, and it is partially due to increased crypto trading. Users executed 127 million trades, 72 percent more than in Q2 2020 (74 million).

“This was primarily driven by increased interest in eToro’s cryptoassets offering as well as elevated levels of retail participation in capital markets”.

reported the trading platform.

As mentioned, eToro is a multi-asset platform. It offers clients to trade commodities, equities, fiat currencies, and crypto-assets. However, the “diversified nature of eToro’s business” has changed since the crypto market boomed in 2021, attracting new traders and investors.

crypto-asset trading on the platform grew 10x year-over-year. Source eToro Q2 report
Crypto-asset trading on the platform grew 10x year-over-year. Source: eToro Q2 report

The company’s overall approach to crypto-assets also shifted. EToro expanded its crypto offering, introducing a variety of coins to the users. Dogecoin and Shiba coin also cut, joining Bitcoin (BTC), Ethereum(ETH), Cardano (ADA), Ripple (XRP), and others (29 cryptos in total).

The report also specified total commissions, overall trading volume, and assets under administration.

eToro, Q2 report

Also read: Bitcoin miners want to sell BTC for way above $50K, new analysis shows.

Other news for eToro

Among the growing revenue and total assets under administration, eToro also went public in Q2. To make that happen, the company combined with a special purpose acquisition company (SPAC) named FinTech Acquisition Corp. V (NASDAQ: FTCV).

Yoni Assia, the chief executive of eToro, commented on the decision back in March 2021.

“When your business grows faster than your expectations, it is always the right thing to do to make sure that you’re fully prepared to take the next stage of growth as a bigger company, as a public markets company. We’re very excited about this next step of growth,”

said the CEO.

Moreover, aiming to expand trading education, the platform launched the eToro Academy. It is an educational hub that will provide the users with “free resources” to improve their understanding of financial markets. The academy includes guides for both beginners and advanced traders.

Also read: Enterprise crypto COTI climbs over 70% on Coinbase listing FOMO.

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